Ursensollen, Germany – Grammer is asking its banks for more money. The request came a day after it announced a deal to supply seats to a large US forklift maker.
In a German stock market announcement, the company said it was in advanced talks with its syndicate of banks concerning a third tranche of an existing syndicated loan. ‘The existing credit line is expected to account for EUR 325m, and will bridge the current exceptional economic situation,’ it said.
Grammer explained it had already used the first two parts of the loan to pay off an earlier loan in February.
The board also cancelled the dividend proposal, and will ask its AGM not to pay a dividend for 2019. No dividends will be paid until the loan expires in three years' time, the company added.
Shareholders will be asked to contribute a further EUR 40m to the company’s capital through rights offerings later on this year.
